Nevada HOA Reserve Study Requirements: NRS 116.31152 Explained

Doug McLain October 13, 2026 8 min read

Quick answer: Nevada requires an HOA's executive board to have a reserve study conducted at least once every 5 years, to review it at least annually, and to adjust the funding plan each year as needed (NRS 116.31152). The study generally must be done by someone holding a permit under NRS chapter 116A, and a summary must be filed with the Nevada Real Estate Division within 45 days after the board adopts the results.

Nevada pairs that study requirement with a funding duty, detailed reserve disclosures in the annual budget, and a two-signature rule for reserve withdrawals. Four sections of NRS chapter 116 do the work. This guide covers each one, paraphrasing the statute as published by the Nevada Legislature. Confirm the wording with the statute or your attorney before acting on it.

The four Nevada reserve sections at a glance

Section	What it covers
NRS 116.3115	Duty to establish adequate reserves, and the board's power to assess for them
NRS 116.31151	Annual operating and reserve budgets, and budget ratification
NRS 116.31152	The reserve study: timing, preparer, contents, state filing
NRS 116.31153	Signatures required to withdraw reserve and operating funds

NRS 116.31152: the reserve study

Timing

Under subsection 1, the executive board must:

Have a study of the reserves conducted at least once every 5 years
Review the results at least annually to decide whether reserves are sufficient
Make any adjustments to the funding plan at least annually that the board deems necessary to provide adequate funding

The annual review is a board duty even in the years between full studies. Put it on the agenda for the meeting where you adopt the budget, and record the review in the minutes.

Who can prepare it

Subsection 2 requires the study to be conducted by a person who holds a permit issued under NRS chapter 116A. There is one exception: a community with 20 or fewer units located in a county with a population under 55,000 may use any person the board deems qualified. Most associations in Clark and Washoe counties will not fit that exception.

What the study must include

Subsection 3 sets a minimum content list:

A summary of an inspection of the major components the association must maintain, repair, replace or restore
An identification of those major components with a remaining useful life of less than 30 years
An estimate of the remaining useful life of each identified component
An estimate of the cost to maintain, repair, replace or restore each one during and at the end of its useful life
An estimate of the total annual assessment that may be needed to cover those costs after subtracting existing reserves, plus an estimate of the funding plan that may be needed

The 45-day state filing

Subsection 4 requires a summary of the study to be submitted to the Division not later than 45 days after the board adopts the results. Check the Nevada Real Estate Division's current form and filing instructions when you file.

NRS 116.3115: adequate reserves and the board's assessment power

NRS 116.3115(2)(b) requires the association to establish adequate reserves, funded on a reasonable basis, for the repair, replacement and restoration of major components. Reserves may be used only for those purposes, and the statute says plainly that they must not be used for daily maintenance.

The association can meet the standard through a funding plan that spreads costs over a period of years, as long as the plan is designed in an actuarially sound manner so that money is available when the work is needed.

Nevada also gives boards an unusual tool. Regardless of what the governing documents say, the board may impose necessary and reasonable assessments to establish adequate reserves without owner approval. Those assessments must be based on the reserve study conducted under NRS 116.31152. A current, defensible study is what supports a reserve assessment if an owner challenges it.

A separate rule applies to capital improvements: owners must get written notice at least 21 calendar days before a meeting where an assessment for a capital improvement will be considered or acted on (NRS 116.3115(9)).

NRS 116.31151: reserve disclosures in the annual budget

Unless the declaration is stricter, the board must prepare and distribute two budgets to every owner not less than 30 days or more than 60 days before the fiscal year begins: the operating budget and the reserve budget. For a calendar-year association, that window runs from early November through the start of December.

The reserve budget must include:

The current estimated replacement cost, estimated remaining life and estimated useful life of each major component
As of the end of the budget year, the estimated cash reserves needed and the cash reserves actually set aside
A statement on whether the board has determined or anticipates that one or more special assessments will be needed
A general statement of the procedures used to estimate and accumulate reserves, including the qualifications of the person who prepared the reserve study

The board may send a summary instead, with written notice that the full budgets are available for review and that copies will be provided on request (subsection 2). The association's collection policy must be made available at the same time and in the same manner (subsection 4).

Ratification

Under subsection 3, within 60 days after adopting a proposed budget the board must send owners a summary and set an owners' meeting to consider ratification, held not less than 14 days or more than 30 days after the summaries are mailed. The budget is ratified unless a majority of all owners, or a larger vote specified in the declaration, rejects it. No quorum is needed. If owners reject it, the last ratified budget continues.

Washington boards will recognize the structure from RCW 64.90.525, though the day counts differ. For running the owners' meeting itself, see the HOA Board Minutes guide on how to run an HOA annual meeting.

NRS 116.31153: two signatures on reserve withdrawals

Money in the reserve account may not be withdrawn without the signatures of at least two board members, or one board member and one officer who is not a board member. This is a statutory internal control, and it is one of the first things I test on a Nevada engagement. If your bank's online platform lets a single user move reserve money, fix the bank setup. The section has its own rules and exceptions for operating account withdrawals and electronic transfers, so read it in full before you set up payment approvals.

A Nevada reserve calendar for a calendar-year association

When	Task	Section
Every 5 years or sooner	Commission a reserve study from a permitted preparer	116.31152(1)-(2)
Within 45 days of adopting it	File the summary with the Division	116.31152(4)
Every year	Review the study and adjust the funding plan	116.31152(1)
30 to 60 days before year start	Distribute operating and reserve budgets and the collection policy	116.31151(1), (4)
Within 60 days after adoption	Send the budget summary and set the ratification meeting	116.31151(3)
14 to 30 days after mailing	Hold the ratification meeting	116.31151(3)

Common mistakes

Treating the 5-year study as the only duty. The annual review and funding adjustment are separate requirements.
Paying operating costs from reserves. The statute bars using reserves for daily maintenance.
Leaving the reserve disclosures out of the budget packet. The component schedule and the special assessment statement are required parts of the reserve budget.
Skipping the state filing. The 45-day clock starts when the board adopts the study results.
One signer on the reserve account. Two are required.

If your board wants help building the budget around the study, start with the HOA master budget guide and how much cash to keep in the operating account. For a national comparison, HOA Fiscal keeps a table of reserve study requirements by state, and our Washington reserve study post shows how another state handles the same question.

Dynamite Management handles the financial side for associations in any state, including reserve accounting, budget packets and Form 1120-H. Chapter 116 has exemptions and special rules for some communities, so confirm with your attorney that these sections apply to yours.

FAQ

How often does a Nevada HOA need a reserve study?

At least once every 5 years, with a board review of the results at least annually, under NRS 116.31152(1).

Who can prepare a Nevada HOA reserve study?

A person holding a permit under NRS chapter 116A. A community of 20 or fewer units in a county with fewer than 55,000 people may use anyone the board deems qualified.

Does a Nevada HOA have to file its reserve study with the state?

A summary must be submitted to the Division within 45 days after the board adopts the results of the study (NRS 116.31152(4)).

Can a Nevada HOA board raise assessments for reserves without an owner vote?

NRS 116.3115(2)(b) lets the board impose necessary and reasonable assessments to establish adequate reserves without owner approval, if they are based on the reserve study.

Can a Nevada HOA use reserve funds for operating expenses?

No. Reserves may be used only for repair, replacement and restoration of major components and must not be used for daily maintenance.

This is not legal advice. It summarizes NRS 116.3115 through 116.31153 as published by the Nevada Legislature. Confirm the current statute text and your governing documents with your association's attorney.

Cover: Photo by David Brown on Pexels